Australian Mines boss receives an ASX scolding over cobalt project funding comments
The ASX has demanded battery metals player Australian Mines explain further why its managing director made comments about a confidential funding deal that wasn’t yet complete at a recent industry event in London.
The Australian bourse did not deem the company’s (ASX:AUZ) initial response as adequate and wants to know what Australian Mines is doing to keep its directors under control.
Managing director Benjamin Bell disclosed in a May 17 presentation to the 121 Mining Investment London conference that SK Innovation are funding construction of the processing plant at the Sconi cobalt, nickel and scandium project in Queensland.
Company secretary Oliver Carton explained that the initial response to the ASX outlined that Australian Mines is in ongoing talks with SK Innovation regarding the financing for the project.
“These discussions are incomplete and confidential at this stage,” he said.
Mr Oliver said Mr Bell’s comments reflected his view of where the talks were likely to lead even though they remained incomplete and confidential.
“The company acknowledges that in this regard, the funding comments may have anticipated an outcome that has not yet been achieved and may in fact not be achieved.”
Australian Mines previously inked a binding agreement for SK Innovation to buy up to 12,000 tonnes of cobalt sulphate and 60,000 tonnes of nickel sulphate each year from the Sconi project.
SK Innovation also agreed to assist in the development and construction and/or financing of the project by recommending a financial adviser to assist with equity and debt funding.
Australian Mines told the ASX it is now in the process of adopting a new continuous disclosure policy and plans to subject its directors and senior managements to annual training on its continuous disclosure obligations.
Shares dipped 1.1 per cent to 8.7c on Friday morning.